Heat pumps

Heat pump hot water rebates in Australia: federal and state

Heat-pump hot water can be one of the best-value electrification upgrades — especially when federal and state incentives are stacked.

By the AussieQuotes editorial teamPublished Updated
Heat pump hot water system installed beside a brick home

General information only. Government programs change often — check the official source before you sign.

Federal: STCs

Eligible air-source heat-pump water heaters create small-scale technology certificates under the Small-scale Renewable Energy Scheme. The number depends on the model and your location zone. As with solar, installers usually claim them and take their value off your price.

Victoria

  • Solar Homes hot water rebate — Solar Victoria has offered a rebate for eligible heat-pump and solar hot water systems.
  • Victorian Energy Upgrades (VEU) — accredited providers can offer discounts for replacing an existing system with an efficient heat pump.

The two programs have their own rules about whether they can be combined.

New South Wales

The NSW Energy Savings Scheme (ESS) supports efficient hot water upgrades, including heat pumps, through accredited providers who pass on the value as a discount.

Other states and territories

  • ACT — the Sustainable Household Scheme has offered zero-interest loans covering heat-pump hot water.
  • South Australia — the Retailer Energy Productivity Scheme (REPS) may support some upgrades through retailers.
  • Elsewhere — use the energy.gov.au rebates finder for current programs.

Getting the most from your heat pump

If you have solar, setting the heat pump to run in the middle of the day can use your own power and cut running costs. See our heat pump cost guide or compare heat pump hot water quotes.

What to check on your quote

  • Each incentive shown as a separate line, with who claims it.
  • The model, tank size and performance in your climate.
  • Electrical work and removal of the old system.
  • Whether the provider is accredited for the state scheme.

Sources

Frequently asked questions

Can I combine federal and state hot water incentives?

Often, yes, but state programs have their own rules. Ask your installer to confirm on the quote.

Do I need solar for a heat pump rebate?

No. Heat-pump incentives generally don’t require solar, though solar can reduce running costs.

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